When to Take CPP and OAS: Early, On Time, or Late?

Updated June 3, 2026

One of the biggest retirement decisions has no single right answer: when should you start CPP and OAS? Start early and the cheques are smaller but arrive sooner; wait and they’re much larger but you collect for fewer years. Here’s how the math works and what should drive your choice.

CPP: a 75% swing from 60 to 70

You can start the Canada Pension Plan any time from 60 to 70. The standard age is 65, and the adjustments are fixed by legislation:

Start before 65: your pension drops 0.6% per month early — up to 36% less if you start at 60.
Start after 65: it grows 0.7% per month — up to 42% more if you wait until 70.

Start age	CPP vs the age-65 amount
60	−36% (about 64% of the 65 amount)
65	baseline (100%)
70	+42%

So the same person’s CPP at 70 is roughly double their CPP at 60. For reference, the 2025 maximum CPP at 65 is about $1,433/month — but most people get less, because it depends on your contribution history. Use your own “at 65” estimate from your My Service Canada Account.

OAS: 65 to 70 only

Old Age Security works similarly but with two differences: you can’t start before 65, and deferring adds 0.6% per month (up to 36% more at 70). OAS isn’t based on work history — it’s based on years lived in Canada — and most people who qualify receive close to the maximum (around $728/month in 2025 for ages 65–74).

The break-even age

The core trade-off is longevity. A bigger, later cheque eventually out-totals a smaller, earlier one — but only if you live long enough to collect it. That crossover is the break-even age:

CPP at 65 vs 70: break-even is around age 82.
CPP at 60 vs 65: break-even is around age 74.

Live past the break-even and waiting wins; pass away before it and starting early collected more. The CPP & OAS calculator finds the break-even for your numbers and shows the cumulative totals side by side.

What should actually drive your decision

Break-even math is only part of it. Weigh these too:

Longevity and health. Expect a long life (good health, family history)? Delaying is excellent, inflation-protected longevity insurance. Shorter expectancy? Earlier often makes sense.
Do you need the money now? If CPP/OAS is essential income at 63, take it. The “optimal” age is irrelevant if you can’t pay the bills while waiting.
Other income and the OAS clawback. If your retirement income is high (roughly six figures), OAS can be partly clawed back — a reason some defer it.
Bridging with savings. Some retirees spend down RRSPs/investments first and delay CPP to 70, effectively buying a bigger guaranteed pension. See the retirement drawdown calculator and the 4% rule.
Peace of mind. A larger guaranteed, inflation-indexed cheque can simplify the rest of your plan and reduce sequence of returns risk.

The takeaway

CPP can start 60–70 (−36% to +42% vs 65); OAS can start 65–70 (up to +36%).
The break-even is roughly 74 (for 60 vs 65) and 82 (for 65 vs 70) — it’s a longevity bet.
Let health, need for income, other income, and peace of mind guide you, not just the math.

Compare the amounts and find your break-even in the CPP & OAS calculator.

This is general education, not financial advice. Confirm current figures and your own estimates with Service Canada.

Frequently asked questions

Should everyone just delay to 70?

No. Delaying gives the biggest cheque, which is great longevity insurance if you expect to live long and can afford to wait. But if you need the income at 60–65, are in poor health, or have a shorter life expectancy, taking it earlier can be the right call. It's a personal decision, not a one-size answer.

Does working while collecting CPP affect it?

If you're under 70 and still working while receiving CPP, you (and your employer) keep contributing, which earns you the post-retirement benefit — small extra amounts added to your pension. High employment income can also trigger the OAS clawback, which is a reason some higher earners delay OAS.

Are CPP and OAS adjusted for inflation?

Yes. Both are indexed to inflation, so your cheque keeps pace with the cost of living. That's partly why delaying is valuable — a bigger inflation-protected base, guaranteed for life, is hard to replicate with investments.